Concrete Pumping plans $40 million incremental term B for acquisition

By Sara Rosenberg

New York, March 18 – Concrete Pumping Holdings Inc. plans on getting a $40 million incremental term loan B to help fund its acquisition of Capital Pumping LP, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Other funds for the transaction are expected to come from $95 million of new equity securities.

However, the final amount of equity or equity-linked securities issued and the size of the incremental term loan may change based on market conditions.

The company currently has a $357 million covenant-lite term loan B due Dec. 6, 2025, priced at Libor plus 600 basis points.

The existing term loan B has an incremental allowance of the greater of $40 million and 0.5 times EBITDA free and clear, plus unlimited at 3.5 times net first-lien leverage.

Under the agreement, Capital Pumping is being bought for $129.2 million.

Closing is expected in the second calendar quarter, subject to regulatory approvals and other customary conditions.

On a pro forma basis giving effect to the acquisition of Capital Pumping as of the beginning of Concrete Pumping’s 2019 fiscal year, Concrete Pumping expects its net leverage to decline by the end of its fiscal year 2019 to 3.5 times or below from about 4.4 times as of Dec. 6, 2018.

Concrete Pumping is a Denver-based provider of concrete pumping services and concrete waste management services. Capital Pumping is a provider of concrete pumping services in Texas.

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